A recent survey by The Local suggests a clear shift in how foreign residents in Germany manage their money.
While traditional German banks such as Sparkasse or Commerzbank still play a role for some, many readers told us they now rely on app‑based banks for their everyday finances – sometimes in combination with a traditional account.
These newer providers are often referred to as 'new banks' (Neobanken) in Germany.
Unlike traditional banks, they don’t always offer everything that comes with a traditional high‑street bank. Services such as in‑branch support, overdraft facilities, cash deposits or certain types of credit are often more limited or handled via partner services, and in some cases missing altogether. None of the banks listed below offer 'Girocards', for example.
But on the plus side, they do score well for convenience, usually operating entirely through a smartphone app, without branches and with fewer fees. Accounts can be opened in minutes, customer support is more likely to be available in English (and other languages), and everyday tasks like checking balances or transferring money tend to be quicker and easier.
So if you need a new bank account, or want to add a touch of convenience to your money management in Germany, here are some of the pros and cons of eight of the most popular Neobanken.
N26
N26 is a Berlin‑based mobile bank with a full German banking licence. Opening an account is usually quick and fully app‑based, although some nationalities face stricter document requirements than others.
As a licensed German bank N26 can report to Schufa, which may help new residents build a local financial record over time. Deposits are covered by Germany’s statutory deposit guarantee, up to the standard EU limit (currently 100,000 EUR per person per bank).
Pros
- German IBAN, which can help avoid problems with salary payments and rent
- App and customer support available in English
- No monthly fee for the standard account
Cons
- Document requirements can be strict for some nationalities
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bunq
Dutch‑based bunq tends to appeal to people who value features and flexibility over keeping costs as low as possible. Accounts can be opened relatively quickly and the bank accepts a wide range of passports, though some users need to provide additional documents after opening.
While bunq provides a German IBAN, it doesn’t typically report to Schufa, so generally won’t help build a German credit history.
Deposits are protected under the Dutch deposit guarantee scheme, in line with EU rules.
Pros
- German IBAN
- Accepts a wide range of passports
- Strong English‑language support
- Useful features like multiple sub‑accounts
Cons
- Free account is limited
- Paid plans are relatively expensive
Wise
Originally known for international money transfers, Wise has become a popular everyday account for expats. It’s one of the easiest accounts to open, often even before arriving in Germany, and requires very little paperwork at the start.
German‑based customers usually receive an IBAN from an EU country other than Germany. As Wise is not a traditional bank, funds are safeguarded under e‑money rules rather than protected by German statutory deposit insurance.
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Pros
- Very easy to open, even before arriving in Germany
- No Anmeldung or residence permit required
- Excellent for holding and transferring multiple currencies
- Strong reputation for transparency and low fees
Cons
- No German IBAN
- Limited free ATM withdrawals
Tomorrow
Tomorrow is a Germany‑based mobile bank with a strong focus on sustainability. Opening an account is app‑based and may involve standard identity and (for some products) credit checks via its partner bank, Solaris.
Because Tomorrow operates via a German‑licensed partner bank, certain products can be reported to Schufa, which may help build a local credit record. Deposits are protected under the German deposit guarantee system via its banking partner.
Pros
- German IBAN
- English‑language app
- Clear ethical and environmental positioning
- Simple, app‑based banking
Cons
- Many useful features sit behind paid plans
- More credit checks than some competitors
Vivid Money
Vivid offers a feature‑heavy app aimed at digitally confident users. Reportedly, it’s often used as a secondary account to help people manage their spending.
Vivid accounts can usually be opened without registering at a German address (Anmeldung), but the process may involve additional checks. An account with Vivid generally does not help build a German Schufa credit history.
Pros
- German IBAN
- Multiple sub‑accounts with their own IBANs
- Cashback features
- English support
Cons
- No full banking licence
- Pricing can become unclear over time
- Limited free ATM withdrawals
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Monese
Monese offers relatively straightforward onboarding and accepts many foreign passports, making it accessible for short‑term residents. It does not provide a German IBAN or create a Schufa record.
As an e‑money provider rather than a bank, deposits are safeguarded rather than covered by standard German deposit insurance.
Pros
- Strong English‑language support
- Straightforward onboarding
- Joint accounts available
- Accepts many foreign passports
Cons
- No German IBAN
- Fewer features than some competitors
- No German credit history
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Trade Republic
Known primarily as an investment app, Trade Republic now also offers a current account. Onboarding is app‑based and generally straightforward, even for users with limited financial history in Germany
As a German‑licensed bank, it can report credit‑relevant information to Schufa, but many users still treat it primarily as an investment or savings account. Eligible deposits are protected up to the EU‑wide limit under the German statutory deposit guarantee scheme.
Pros
- German IBAN
- No monthly fees
- High acceptance rate
- Interest on balances
Cons
- Very limited everyday banking features
- App‑only, no cash deposits
- Not designed specifically for international residents
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Revolut
Revolut may ask for your German tax ID during or after onboarding, which can complicate things for brand‑new arrivals.
While Revolut provides a German IBAN, it does not reliably help users build a German Schufa record. Deposits are protected under the Lithuanian deposit guarantee scheme, in line with EU standards, rather than under German law.
Pros
- Excellent app and real‑time balance updates
- Useful for international transfers
- Strong budgeting and card controls
Cons
- Can requires a German tax ID to open an account
- German onboarding can be complicated for new arrivals
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